What's Difference Between STP and Market Maker Stock Account in Stocks?

STP Stock Account vs Maker Account

STP Stock Accounts

STP Stock Account stands for STP, the STP Stock Account stocks brokers will send client orders direct to their Stocks Liquidity Provider, the Stocks Liquidity Provider is a big bank with deep liquidity to trade on the inter-bank net-work.

An STP Stock Account provided by an STP stocks broker can either have one Stocks Liquidity Provider or many liquidity providers.

The best thing about STP Stock Accounts is that stock traders can place their stock trades immediately with instant execution because they have got access to inter bank market via their STP stocks broker.

STP Stock Accounts will not charge commissions, but will charge spread on stock trades. Because traders have access to the interbank markets execution, there is no requotes on the stock orders neither any order waiting for trade execution, the order execution is instant.

MM Accounts

Market Maker Stock Accounts are stocks broker accounts where Market Maker stocks brokers have a dealing desk where they can match trading orders in house without going to the online inter bank stocks market.

Stocks orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This stocks broker can make the decision to either execute a stocks order that's the opposite of a stocks trader's order thus if the trader makes a loss the broker makes a profit, & if stocks trader makes a profit the broker makes a loss.